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“Before this legislation was passed there were no provisions in the union rules to allow an administrator to step in," Mr Mylan added.

“With the legislative changes that have now been made, the union can request an administration be appointed."

The union expects an administrator to be appointed by the Industrial Relations Court within 28 days.

All elected offices within the NSW union will be declared vacant.

Mr Thomson gave several interviews over the weekend protesting his innocence.

He claims he was set up by rival union figures.

The news came after shadow attorney-general George Brandis said he didn't believe a word of the explanation given by federal MP Craig Thomson regarding findings he misused Health Services Union (HSU) funds.

In weekend interviews Mr Thomson gave his take on a Fair Work Australia report that found he misused some $500,000 of HSU funds on escort services as well as personal and election campaign expenses when he was head of the union.